The ITAT Mumbai held that notional rent cannot be taxed under “Income from Other Sources” without evidence that such income was actually received or receivable. The Tribunal deleted additions relating to shared premises with group companies.
The Tribunal upheld disallowance of deduction under Section 80GGC after finding the political donation lacked genuineness. The ruling highlights that payments through banking channels alone cannot establish a valid deduction when surrounding facts indicate accommodation entries.
The Tribunal ruled that addition of alleged undisclosed income could not be sustained merely on the basis of WhatsApp chats without supporting enquiry or evidence. It held that the department failed to establish any actual transaction involving the assessee.
ITAT Mumbai held that a company engaged in publishing platforms, software solutions, and product development could not be compared with a limited-risk captive ITES service provider. Exclusion of the comparable eliminated the transfer pricing adjustment.
The Mumbai ITAT restored additions relating to unreconciled DGFT import and export figures after finding that complete data relied upon by the Department had not been furnished to the assessee. The Tribunal directed fresh adjudication after providing detailed DGFT records and an opportunity for reconciliation.
Tribunal ruled that reliance on statement of an alleged accommodation entry provider without furnishing statement or allowing cross-examination violated principles of natural justice.
ITAT Mumbai held that although foreign commission expenditure was non-genuine and liable for disallowance, amounts already written back and taxed in a subsequent year could not again be taxed through disallowance in earlier years.
Mumbai ITAT ruled that transfer of professional fees between branches through journal entries did not attract TDS liability. The Tribunal accepted ICAI records confirming the existence of the Ahmedabad branch.
Mumbai ITAT held that the CIT(A) cannot dismiss an appeal merely for non-prosecution without adjudicating the issues on merits. The matter relating to TDS on payments to Facebook Netherlands was remanded for fresh consideration.
Mumbai ITAT observed that assessable value under customs law may differ from invoice value and such variation by itself cannot justify addition under Section 69C without further evidence.
